Hungary's Media Authority: Public Service Media

(This is an excerpt from the report "Hungarian Media Laws in Europe: An Assessment of the Consistency of Hungary’s Media Laws with European Practices and Norms")

Hungary's new media laws have made sweeping changes to the country's public service media system. Each of Hungary's public service media outlets—three national TV, three radio stations and one national news service—are now supervised by a single body headed by a chairperson appointed by the Media Council. The assets of these outlets have been transferred to a newly established public media fund, which is managed by the Media Council. News content for all public media stations is produced centrally by Hungary's national news service, MTI, which is headed by a new director who was nominated by the Media Council chairperson. Opponents claim the measures have eliminated the independence of Hungary's public service media, bringing all aspects—from programming to funding to regulatory supervision—under the Media Council's control. Critics also warn that the new centralised news-production system threatens the public media's diversity and pluralism. The Hungarian Government says that the new system is more cost-effective and efficient, while still safeguarding the autonomy of Hungary's public media. It also states that examples of similar public media systems can be found in other European states.

Changes to Hungary's public service media were implemented in a succession of amended and new laws in the Government's larger media law "package." These include an initial amendment to the Hungarian Constitution, passed by Hungarian lawmakers in July 2010, which expanded the definition of the role of public broadcasting to include fostering national and European identity, strengthening "national cohesion," and satisfying "the needs of national, ethnic, familial and religious communities." 1 Two subsequent laws—Act 82/20102 and Act CLXXXV of 2010, On Media Services and Mass Media (the "Media Act")3—introduced the new governance, funding and news-production system for Hungary's public service media.

Under the new system, the previously autonomous bodies responsible for overseeing the country's public service media have been merged into a single entity, the Public Service Foundation, which also supervises Hungary's national news agency, MTI.4 The Foundation is managed by an eight-member board of trustees. Six of these members are appointed by Parliament: three by the governing faction and three by the opposition. The Media Council appoints the chairperson and an additional member.5 

The board of trustees is responsible for appointing the directors of Hungary's public media outlets—three national TV and three radio stations and one national news service, MTI. The chairperson of the Media Council proposes two candidates for each post, subject to approval by the Media Council.6 The board of trustees of the Public Service Foundation appoints one of the two nominees proposed by the Media Council chairperson for each of these outlets.7

As specified in the Media Act, Hungary's national news agency MTI has been granted the "exclusive right" to produce news programmes for the country's public broadcasters.8 The law also placed MTI in charge of the online news portals and products of the public media and their on-demand media services. In addition, MTI provides news content free of charge to other media in Hungary. 

The laws also established a new public media fund, the Media Service Support and Asset Management Fund (MTVA), which was assigned all assets of the public media companies.9 The MTVA receives the Government's annual funding for public media, as well as the funds from tendering and license fees and fines.10 The Fund is managed by the Media Council.11 The chairperson of the Media Council appoints, sets the salary for and exercises full employers' rights over the Fund's director general. The chairperson of the Media Council also appoints the Fund's deputy directors, as well as the chairperson and the four members of its Supervisory Board. 12 The Media Council is responsible for approving the Fund's annual plan and subsidy policy and for determining the rules governing how MTVA's assets can be used, managed, and accessed by the public media.13 The Fund's annual budget is approved by Parliament.14 

The Public Service Fiscal Council decides on the distribution of funds to public media service providers.15 Under the previous system, funds were allocated to the individual stations according to fixed percentages of annual license-fee revenues.16 The Public Service Fiscal Council is composed of seven members, including the four director generals of the public media stations and MTI, the director general of the MTVA, and two members appointed by the State Auditors Office.17 The Fund's director general convenes and chairs an annual meeting with the Public Service Fiscal Council to decide on the distribution of the funding between the public media.18 The financial management of public media service providers is monitored by the State Audit Office.19

As specified in the Media Act, the Fund has a range of responsibilities beyond managing public service media assets. It is directly involved in the "production, ordering and purchasing of the programmes of the public service broadcasters,"20 and in implementing the ongoing restructuring of Hungary's public media system.21 In February 2011, Media Council Chairperson Annamária Szalai appointed István Böröcz, a former conservative Smallholder Party MP, as the MTVA's director general.22 Böröcz is responsible for implementing a number of sweeping changes to Hungary's public media system, including the ongoing dismissal of a third of Hungary's 3,000 public media journalists.

INTERNATIONAL CRITICISM

Opponents have raised numerous concerns over the independence of Hungary's public media, claiming the changes have brought all areas of Hungary's public media—from appointing public media directors to managing its funding—under the Media Council's control. Critics warn that the Media Council's partisan composition has, in effect, brought Hungary's public media under the Government's control. A resolution adopted by the European Parliament in March 2011 warned that the legislation contravenes OSCE and international standards "by doing away with the political and financial independence of public-service media."23

A key concern is the Media Council's role in appointing directors of Hungary's public media outlets. According to the Council of Europe's Human Rights Commissioner Thomas Hammarberg, the law limits the board of trustees of the Public Service Foundation to choosing between two nominees selected by the prime minister-appointed president of the Authority, who is also the chairperson of the Media Council. This system, according to Hammarberg, "runs counter to the Council of Europe's standards aimed at preserving the independence of public service broadcasting from interference, notably political, from any external authority."24 

Opponents have also challenged the centralisation of news production under MTI. According to an analysis by the Budapest-based political think tank Political Capital Policy Research & Consulting Institute, this system could create "a 'unitary' approach" among state-owned broadcasters, "endangering the diversity of opinions and information that is available."25 Critics also fear the new centralised system could effectively eliminate critical news coverage of the Government by appointing party loyalists to top editorial positions. These concerns were reinforced after newly named MTI director Csaba Belénessy told a local media outlet following his appointment that the "'public service media should be loyal to the government and fair to the opposition' and should not be an 'enemy of the government' or challenge the 'power of the freely (democratically) elected cabinet … It's not right to accept a position and then defy the employer.'"26 

Free-press advocates have also raised serious concerns over the Media Council's authority over the new public media asset fund, the MTVA. The Council of Europe's Hammarberg asserts that the role of the Fund means that "the [head] of the Media Council [becomes] the indirect employer of all journalists of all public service broadcasting."27 Many contest the manner in which the Fund's powers were expanded under the Media Act to include programming and other activities beyond allocating assets. It is "not quite clear what tasks remain with the broadcasters, if ordering, buying and production of the public service programmes is done by the [MTVA] Fund," according to an analysis by the South East European Network for Professionalization of Media (SEENPM). Because the Fund is managed by the Media Council, this allows the Council to assert "direct political influence" over Hungary's public service media, including over its programming and finances, according to this study.28 

HUNGARIAN GOVERNMENT'S RESPONSE

Hungarian officials have stated that the extensive restructuring was necessary to correct the country's "dysfunctional" public media system.29 In its December 2010 statement, the Government explains that the board of trustees of the Public Services Foundation, the body responsible for appointing public media directors, is elected by Parliament and that all parliamentary parties are represented on a proportionally equal basis.30 

The Government also states that despite the public media's new centralised structure, the system allows for each of these outlets to retain their autonomy. According to the Government, although MTI produces news items, there is no "requirement for public service media to put into live production exactly the same news, and exactly in the same form as these news are produced by the central newsroom."31 It continues: "The Hungarian Telegraphic Agency (MTI) as public service news hub is offering to public service broadcasters a colourful menu full of continuously updated news releases, and to anyone who has a demand for this sort of thing. The creation of this news hub does not mean centralisation, rather it means polarisation."32 

In addition, the Government states that the consolidation of formally autonomous supervisory bodies into a single body makes these media "more transparent and better controllable."33 Officials explain that "whereas in the past some 150 party delegates and 1 civilian monitored the 4 organisations, from now on the number of supervisors will be cut by 4/5 (curatorium, supervisory board, and civil organisation members). This will result in substantial savings."34 

The Hungarian Government acknowledges that under the previous system funding for individual public media was guaranteed separately but states that the new system gives the public media "more financing related independence."35 According to the Government, the director generals of the public media are directly involved in process, and as members of the Public Service Fiscal Council "they will have a say into what should be the relative share of individual public media."36 The public media companies will "continue to play an active part in deciding key financial issues," according to the Government, and "questions like asset sharing and employment will have to be decided in consultation between the MTVA, the Board of Trustees of the Public Service Foundation, and the Public Service Budgetary Council."37 

1 The Constitution of the Republic of Hungary (Act XX of 1949 as revised and restated by Act XXXI of 1989) as of 2 January 2011, see Article 61, available at: http://www.mkab.hu/index.php?id=constitution.
2 Act LXXXII of 2010 on the amendment of certain acts on media and telecommunications amended the 1996 Act on Radio and Television Broadcasting, the Electronic Communications Act of 2003, and minor elements of other laws. Available in Hungarian at: http://www.kozlonyok.hu/nkonline/MKPDF/hiteles/mk10129.pdf. See Summary of these changes in "Hungary: A Wave of Media Legislation," Database on legal information relevant to the audiovisual sector in Europe, IRIS 2010-8:1/34, http://merlin.obs.coe.int/iris/2010/8/article34.en.html. 
3 Act CLXXXV of 2010 on media services and mass media, (hereafter, the "Media Act"), as amended March 2011, available at: http://nmhh.hu/dokumentum.php?cid=26536. The updated Media Act, with additional amendments passed in July 2011, available in Hungarian at: http://www.nmhh.hu/dokumentum.php?cid=27786. 
4 Per 82/ 2010 and the Media Act (Act CLXXXV of 2010, On Media Services and Mass Media), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
5 Media Act, Article 102, available at: http://nmhh.hu/dokumentum.php?cid=26536. Members of the Public Service Foundation Board of Trustees: http://www.kszka.hu/index.php?option=com_content&view=article&id=436:a-k.... 
6 Media Act, Article 102(2)(a)-(c), available in Hungarian at: http://www.nmhh.hu/dokumentum.php?cid=27786. 
7 Media Act, Article 102, available at: http://nmhh.hu/dokumentum.php?cid=26536. 
8 Media Act, Article 101(4), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
9 Media Act, Article 100; Act 82/2010 initially established the MTVA; the Media Act further defined its role in Article 136, available at: http://nmhh.hu/dokumentum.php?cid=26536. 
10 Media Act, Article 136(3) and 136(4), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
11 Act 82/2010, Section 22 and 40; Articles 108 and 136 of the Media Act further specify the Media Council's role in managing MTVA, available at: http://nmhh.hu/dokumentum.php?cid=26536. 
12 Media Act, Article 136(11-14), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
13 Media Act, Article 108(13) and Article 136, available at: http://nmhh.hu/dokumentum.php?cid=26536. 
14 Media Act, Article 136(15), available at: http://nmhh.hu/dokumentum.php?cid=26536 
15 Media Act, Article 108(2) and 108(5), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
16 Analysis and Assessment of a Package of Hungarian Legislation and Draft Legislation on Media and Telecommunications," Prepared by Dr. Karol Jakubowicz, Commissioned by the Office of the OSCE Representative on Freedom of the Media. Warsaw, Poland, September 2010, available at: http://www.osce.org/fom/71218. 
17 Media Act, Article 108(3), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
18 Media Act, Article 108(4), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
19 Media Act, Article 108(14), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
20 Media Act, Article 108(1), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
21 Media Act, Article 136(1), available at: http://nmhh.hu/dokumentum.php?cid=26536. 
22 Annamária Szalai's first appointment for MTVA's director general, Csaba Fazekas, resigned after three months. See "Hungarian media fund head resigns after three months, replaced by former politician," in politics.hu, 14 February, 2011, available at: http://www.politics.hu/20110214/hungarian-media-fund-head-resigns-after-.... 
23 "European Parliament resolution of 10 March 2011 on media law in Hungary," Resolution P7_TA(2011)0094, available at: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-T... 0094+0+DOC+XML+V0//EN. 
24 "Opinion of the Commissioner for Human Rights on Hungary's media legislation in light of Council of Europe standards on freedom of the media," Council of Europe Commissioner for Human Rights, 25 February 2011, https://wcd.coe.int/wcd/ViewDoc.jsp?id=1751289. 
25 "The New Hungarian Media Law: Evaluation and Summary," Political Capital Policy Research & Consulting Institute, 22 January 2011, http://www.riskandforecast.com/post/hungary/the-new-hungarian-media-law-.... 
26 "Belénessy Csaba a köz új szolgálatáról," 168 Óra Online, 8 December 2010, available in Hungarian at: http://www.168ora.hu/itthon/belenessy-csaba-a-koz-uj-szolgalatarol-66304... (Translation by Natália Jánossy). 
27 "Opinion of the Commissioner for Human Rights on Hungary's media legislation in light of Council of Europe standards on freedom of the media," Council of Europe Commissioner for Human Rights, 25 February 2011, available at: https://wcd.coe.int/wcd/ViewDoc.jsp?id=1751289. 
28 "The New Hungarian Media Law Substantially Curtails Press Freedom, Prepared by Judit Bayer for the South East European Network for Professionalization of Media (SEENPM), 22 March 2011, available at: http://www.seemo.org/hungary/files/Bayer_Media%20Law_IFEX_ENfinal220311.pdf. 
29 See MTI report "Opposition parties strongly criticize media bill in heated debate," in Politics.hu, June 16, 2011, http://www.politics.hu/20100616/opposition-parties-strongly-criticize-me... 
30 See Criticism 9, "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
31 See "Criticism 8" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
32 See "Criticism 8" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
33 See "Criticism 13" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
34 See "Criticism 13" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
35 See "Criticism 13" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010 available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
36 See "Criticism 13" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n... 
37 See "Criticism 14" in "Criticisms and answers formulated on the subject of the proposed media act examined in a European context," Ministry of Public Administration and Justice, December 20, 2010, available at: http://www.kormany.hu/en/ministry-of-public-administration-and-justice/n...